Highlights

  • Net income for the quarter ended June 30, 2026 was $8.0 million, a decrease of $39.2 million, or 83.0%, from the prior year.
  • Net loss attributable to Class A stockholders was $1,668 thousand, or $0.02 per diluted share, compared with income of $0.09.
  • Adjusted EBITDA, a non-GAAP measure, was $74.5 million, a $1.9 million, or 2.6%, increase compared with the prior year.
  • Hagerty agreed on June 30, 2026 to acquire Bennetts Motorcycling Services Limited for approximately £34.0 million.

Hagerty, Inc. (NYSE: HGTY) shares were trading at USD 15.62 on October 27, 2026, down 2.07%, with a relative volume at time of 3.28. The collector car insurance company began operating under the Markel Fronting Arrangement on January 1, 2026, agreed to acquire Bennetts Motorcycling Services Limited on June 30, 2026, and filed its quarterly report for the period ended June 30, 2026 on August 5, 2026.

Hagerty is incorporated in Delaware and is headquartered in Traverse City, Michigan. The company provides insurance for collector cars and enthusiast vehicles and says it has done so for over 40 years. Its reinsurer, Hagerty Reinsurance Limited, reinsures risks predominantly from policies issued by Essentia Insurance Company, a subsidiary of Markel Group Inc. Hagerty also operates as a Managing General Agent and offers the Hagerty Drivers Club membership, car events and media platforms. It reports two segments, Insurance and Marketplace. It had 102,070,523 Class A shares outstanding as of July 24, 2026.

Second Quarter 2026 Results

For the three months ended June 30, 2026, total revenue was $354,822 thousand, compared with $379,309 thousand a year earlier, a decrease of 6.5%. Income before taxes was $2,232 thousand, compared with $53,363 thousand. Net income was $8.0 million, a decrease of $39.2 million, or 83.0%. Net loss attributable to Class A common stockholders was $1,668 thousand, or $0.02 per diluted share, compared with net income of $9,098 thousand, or $0.09 per diluted share. Adjusted Net Loss, a non-GAAP measure, was $6,188 thousand, and Adjusted Diluted EPS was $(0.02).

Segment Results

Insurance segment income before taxes was $2.8 million, a $58.0 million decrease from the prior year. The company attributed the decrease to the transition under the Markel Fronting Arrangement, which lowered commission and fee revenue and added non-cash costs to amortize remaining deferred ceding commissions for Essentia policies written in 2025. Earned premium, net increased $74.2 million, or 41.7%, reflecting a quota share percentage increase from 80% to 100%. Total Written Premium was $424,502 thousand. Policies in Force were 1,855,649, up 19.0%, and Policies in Force Retention was 88.2%, compared with 88.7%. The Hagerty Re Loss Ratio was 42.7%, compared with 42.3%.

Marketplace segment income before taxes was $1.1 million, compared with a loss of $2.0 million in the prior period. The company said the improvement principally reflected increased auction revenue, including an 80.3% increase in Net Auction Sales from the 2026 Concorso d'Eleganza Villa d'Este Auction.

Liquidity and Debt

Cash and cash equivalents were $298,302 thousand as of June 30, 2026. Total outstanding borrowings under the 2025 JPM Credit Facility, which has aggregate borrowing capacity of $375.0 million, were $103.9 million, and the company said it was in compliance with its financial covenants. The BAC Credit Facility has an aggregate commitment of $150.0 million, with a borrowing base of $87.5 million. The estimated redemption value of the Series A Convertible Preferred Stock was $100.8 million. The company said it believes its sources of liquidity will be sufficient to support its anticipated commitments, operating needs and capital requirements.

Pending Acquisition and Outlook

The Bennetts purchase price is approximately £34.0 million, or approximately $43.0 million as of June 30, 2026. Bennetts is a specialty motorcycle insurance firm in the United Kingdom. The transaction is subject to regulatory approval and other customary closing conditions and is expected to close during the third quarter of 2026. The 10-Q does not provide numerical financial guidance.